Texas House votes to abolish Texas Lottery Commission; save Texas lottery
AUSTIN (Nexstar) — Sunset review couldn’t have come at a worse time for the Texas Lottery Commission (TLC). While TLC was listed by USA Today as one of the best places to work in 2025, in September it’s likely no one will be working there.
Sunset review is a process most state departments go through every 12 years. During a review, the legislature has to actively renew the department or they cease to exist. However in this case, the legislature is proactively killing the TLC.
Saturday night, the Texas House passed an amended version of Senate Bill 3070, which abolishes the TLC and hands over control of the Texas Lottery and Charitable Bingo to the Texas Department of Licensing and Regulation (TDLR). The decision comes amidst a host of scandals for the commission, resulting in investigations from both the Texas Rangers and the Attorney General’s Office.
Changes from the Senate
While the Senate passed SB 3070 unanimously, House sponsor Charlie Geren, R-Lake Worth, re-wrote the bill based on conversations with TDLR.
Each bill calls for the incoming Texas Lottery division of TDLR to undergo a sunset review to see how they’re functioning under the new department. However, the Senate’s version called for a full review in 2027, while the House calls for a review in 2029. Additionally, the scope of the House’s proposed review is more narrowly-tailored to determine if TDLR is the best home for the lottery, and to determine if the lottery is following the guidelines set out by the legislature.
Both versions call for lottery mobile applications to end, however the Texas House removed a provision from the Senate’s version which required TDLR to post the minutes and guest list for all formal or informal meetings regarding contracting, procurement or policymaking of the lottery. The Senate added this language after a lawsuit alleged former TLC officials worked with courier services to brainstorm the best ways to implement lottery mobile applications.
Geren’s version also stripped a provision banning automatic renewals of contracts the TLC entered in before the transfer becomes official on Sept. 1.
Most interestingly, the Texas House removed a provision allowing the Governor, Lieutenant Governor, Speaker of the House or the Attorney General from acting as lottery investigators. The language was added to the Senate version after the retailer Winners Corner — affiliated with the mobile app Jackpocket — refused to let Lt. Gov. Dan Patrick inspect how many lottery terminals they had in their backroom.
What’s next
On Monday, the House will likely hear SB 3070 for a third reading. Should it pass there, it will be sent back to the Texas Senate where they can either agree to the changes or determine which disputed provisions should remain in the final bill. Either way, the elements both sides agree on will likely be sent to Gov. Greg Abbott to sign.
If he signs, the lottery will have this summer to transition to TDLR before the TLC is abolished on Sept. 1. Because the TLC is up for sunset anyway, a Abbott veto would still mean the TLC is abolished on Sept. 1, but the Texas Lottery would go with it.
“Ensuring the integrity, security, honesty and fairness of the agency and its games is the top priority for the Texas Lottery Commission (TLC). The TLC respects the legislative process, serves as a resource to the Legislature, and will follow the direction of the Legislature,” a representative for the TLC said in a statement. “The TLC is prepared to fully support the Texas Department of Licensing and Regulation with ensuring that a smooth, seamless and successful transition occurs for both the administration of the lottery and the regulation of charitable bingo.”
